Chapter 4: Q12PE. (page 585)
These are the part quantities issued in the planned order release section of an MRP report.
Lot sizes.
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This is the amount needed after considering what we currently have in inventory and what we expect to arrive in the future.
Explain the need for the time fences in the master production schedule.
Develop a production plan and calculate the annual cost for a firm whose demand forecast is fall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning of fall is 500 units. At the beginning of fall, you currently have 30 workers, but you plan to hire temporary workers at the beginning of summer and lay them off at the end of summer. In addition, you have negotiated with the union an option to use the regular workforce on overtime during winter or spring if overtime is necessary to prevent stock-outs at the end of those quarters. Overtime is not available during the fall. Relevant costs are hiring, \(100 for each temp; layoff, \)200 for each worker laid off; inventory holding, \(5 per unit-quarter; backorder, \)10 per unit; straight time, \(5 per hour; over time, \)8 per hour. Assume that the productivity is 0.5 units per worker hour, with eight hours per day and 60 days per season.
What is the MRP term for the time periods used in planning?
In a service setting, what general operations–related variable is not available compared to a production setting?
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